First Gen to Supply Geothermal Power to Tropical Hut Sites
Key Takeaways
- •Tropical Hut signed a power supply agreement with First Gen covering at least 750 kilowatts of geothermal power for 12 branches and its head office.
- •The agreement aims to help Tropical Hut manage electricity costs and reduce dependence on fossil fuels.
- •Tropical Hut, founded in 1965, is owned by the Mercury Group of Companies, which also owns Mercury Drug Corp.
- •The deal was made possible through the Green Energy Option Program established under the Renewable Energy Act of 2008.
- •First Gen operates more than 1,700 megawatts of renewable capacity nationwide, with its geothermal portfolio run through Energy Development Corp.
Tropical Hut Food Market, Inc. has enlisted First Gen Corp. to provide renewable energy to 12 of its branches as well as its head office, as the fast-food operator looks to control power costs and lessen its dependence on fossil fuels.
In a statement issued Sunday, First Gen said it had signed a power supply agreement with Tropical Hut covering at least 750 kilowatts of electricity drawn from its geothermal facilities in Leyte.
Amelita D. Cauilan, president and general manager of Tropical Hut, said the agreement would help the company manage costs while shifting toward renewable energy.
"This will help us keep serving our customers with the burgers and other classic favorites just as we have done for over 60 years," she said.
Founded in 1965, Tropical Hut started as a coffee shop serving hamburgers before broadening its menu to include spaghetti, fried chicken, and other fast-food offerings. The chain is owned by the Mercury Group of Companies, which is also the parent of Mercury Drug Corp.
The deal reflects a broader push among Philippine businesses to source electricity from renewable energy under the government's Renewable Energy Act of 2008, which established the Green Energy Option Program allowing end-users to choose RE suppliers for their power needs. Sourcing geothermal power, an indigenous resource in which the Philippines is among the world's top producers, can also shield businesses from fuel-price volatility tied to imported coal and oil.
"We are privileged to partner with such an iconic Filipino brand and provide them with indigenous geothermal power to support their operations. We look forward to a fruitful collaboration with Tropical Hut," said Carlo L. Vega, First Gen's chief customer engagement officer.
First Gen holds more than 1,700 megawatts of renewable energy capacity nationwide, spanning hydro, geothermal, solar, and wind facilities. The company's geothermal portfolio is operated through Energy Development Corp., whose steam fields in Leyte are among the country's largest. — Sheldeen Joy Talavera
